FulcrumWay - Leverage Advanced Controls for EBS R12 to Streamline Record to Report Process

Leverage Technology:Turn Risk into Opportunity™

Risk and Compliance Financial Reporting Internal Audit Controls Catalog Application Security Advanced Analytics

A Leader in Risk Based Enterprise Controls Management Solutions

Copyright ©. Fulcrum Information Technology, Inc.Give me a lever long enough and a fulcrum on which to place it, and I shall move the world - Archimedes

Financial Close and March Madness - You vs. Audit?

Learn how to leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process

Webinar – March 18th , 2014

Adil Khan

Managing Director

www.fulcrumway.comPage 2Copyright © FulcrumWay

Leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report

process

Introductions

Top Financial Close Challenges

Overview of Financial Controls

Advanced Controls for Record to Report

Case Study

Q&A

Agenda



process

Introductions




Case Study

Q&A

Agenda


A Leader in Risk Based Controls Management™

FulcrumWay: is the #1 End-to-End Provider of Risk Based Enterprise Controls Management Solutions for Oracle EBS, PeopleSoft and JDE customers with over 200 Fortune-500 to Middle Market clients. Since 2003, we have successfully assisted companies across all major industry segments.

Expertise: Risk Advisory Services. Advanced Controls Design for Enterprise Applications. Best Practices for Risk Mitigation and Internal Controls Automation. Audit, Compliance, Financial, Enterprise and Operational Risk Assessments. Risk Remediation Services.

Packaged Solutions: FulcrumWay is the #1 choice of Oracle customers for Oracle GRC Advanced Controls, GRC Manager, and GRC Intelligence/OBIEE software implementation. Oracle has certified us as the only partner with Accelerators for Oracle GRC. We also provide Managed Services

Software Services: Risk Assessment for ERP systems, Control Design and Management Tools, Controls Catalog, Enterprise Risk Manager, Financial Reporting Manager, Audit Manager

USA Presence: Privately held Delaware Corporation with US offices in New York City, Dallas and San Francisco

International Presence: in Auckland, Chennai, Johannesburg, London, Mexico City

FulcrumWay


FulcrumWay Clients Successful Track Record

Government Oil and Gas

Healthcare

Communications

Financial Services

Transportation Natural ResourcesManufacturing

Retail

High TechMedia/Entertainment Life Sciences

http://www.rd.com/

http://www.arvinmeritor.com/

http://www.semiconductorstore.com/pages/asp/supplier.asp?pl=0133

http://www.integralife.com/index.aspx


FulcrumWay™ Insight

Thought Leadership

Co-Authored GRC Book: First book on GRC for Oracle Applications

SROAUG GRC Solution Lab - February 21st – Los Angels: GRC Case Studies and Best Practices

Collaborate 14 – GRC Client Appreciation Dinner April 7th, 2014 Las Vegas

NEOAUG Spring Conference – June 9th – Worcester, MA -GRC Case Studies and Best Practices

IIA/ISACA GRC Conference – August 19th, 2014 - Presentations – Five New Ways to Assess the Risks that Can Turn Results into Rewards

Webcasts – Every 3rd Tuesday of the Month – GRC Best Practices, Trends and Expert Insight

Oracle Open World – Annual GRC Dinner on September 29th, 2014 - San Francisco, CA

LinkedIn –FulcrumWay Risk, Compliance and Audit Software Group

YouTube Podcasts – FulcrumWay Instant Insight in 10 min or less

Proven Expertise



process

Introductions




Case Study

Q&A

Agenda


CFOs struggle to improve management of their financial processesTop Challenges

Auditing Standard No. 5 (AS5) directs auditors to focus on those areas that present the highest risk, such as the financial statement close process and controls designed to prevent fraud by management.

Personnel Issues

17%

Financial Close and Controls

36%

Significant Account

Level40%

Other 6%

Percentage of Internal Control Weaknesses by Category


Enterprise Close Process is Complex

Monitor Financial Close Controls

Sub Ledger Close General Ledger Close

Data Assurance Consolidation Internal

ReportingExternal

Reporting Filling

Close POClose Project Billing and CostingRun post process for PO, Projects, etcClose AR sub ledgerClose AP sub ledgerClose Inventory sub ledgerClose HCM sub ledgerClose Assets sub ledgerRun revaluation/re-measurementRun GL post process for AP,AR, FA, etc.

Reconcile sub ledgers to GLReconcile Bank AccountsReconcile all accountsApprove adjustmentsClear suspense accountsPost accrualsRun allocations

Gather non actuals data from reporting (lease, credit line, headcount, plan, etc)

Gather and validate complete data sets to support all financial reporting needs (i.e. Legal Entity, Segments, Management, Tax, Sustainability Metrics, Tax, etc

Run summary allocationsRun consolidation to summary ledgersMake Topside EntriesRun reports for FASBRun reports for KPI’sRune reports for FXRun reports for Retained Earnings

Run period-end management reportsReview reports for business performance and realignment

Generate external reportsCompile Disclosure ItemsGather other financial information

Deliver XBRL/Edgar filings to the SECDeliver statutory filings such Tax

Top Challenges


Enterprise Close Process is Complex

Monitor Financial Close Controls

Sub Ledger Close General Ledger Close

Data Assurance Consolidation Internal

ReportingExternal

Reporting Filling

Close POClose Project Billing and CostingRun post process for PO, Projects, etcClose AR sub ledgerClose AP sub ledgerClose Inventory sub ledgerClose HCM sub ledgerClose Assets sub ledgerRun revaluation/re-measurementRun GL post process for AP,AR, FA, etc.

Reconcile sub ledgers to GLReconcile Bank AccountsReconcile all accountsApprove adjustmentsClear suspense accountsPost accrualsRun allocations

Gather non actuals data from reporting (lease, credit line, headcount, plan, etc)

Gather and validate complete data sets to support all financial reporting needs (i.e. Legal Entity, Segments, Management, Tax, Sustainability Metrics, Tax, etc

Run summary allocationsRun consolidation to summary ledgersMake Topside EntriesRun reports for FASBRun reports for KPI’sRune reports for FXRun reports for Retained Earnings

Run period-end management reportsReview reports for business performance and realignment

Generate external reportsCompile Disclosure ItemsGather other financial information

Deliver XBRL/Edgar filings to the SECDeliver statutory filings such Tax

Top ChallengesNumerous ERP modules

involved (INV,OM, AP,AR,GL)

Numerous interdependencies between applications and

departments

Interdependent processes that must run in parallel

Large volume of incomplete transactions in interface tables

must be manually resolved

Large volume of incomplete transactions in interface tables

must be manually resolved

Lack of issue identification and remediation

Coordination of key personnel

Simultaneous audit of the close, during the close

SOX certifications should precede financial reporting

Compressed reporting period

Penalties for late reporting

Steps must be completed in the right order

Difficult to see bottlenecks within critical

Lack of time for internal due diligence


Reconciliation requires clear communication and effective collaboration

Account Reconciliation

ExecutivesAdministrators

Auditors

Preparers & Reviewers

Top Challenges


Reconciliation requires clear communication and effective collaboration

Account Reconciliation

ExecutivesAdministrators

Auditors

Preparers & Reviewers

Top Challenges

Lack of insight – Are there any surprises

during account reconciliation?

Lack of real time status.

Too much time for audit & review

Missing work papers on key account balances

Disconnected control testing – redundant efforts

No standard definition for “reconciled”.

Account Reconciliation not based on Risks such as potential for fraud or

misstatement, turnover, account history, materiality, volume of transactions,

significant judgment, need for regular manual posting or adjustments, etc

Delinquent reconciliations – No Action plan for Account owner to remediate

delinquent reconciliations



process

Introductions




Case Study

Q&A

Agenda


Oracle EBS 11i vs R12 Close ProcessFinancial Controls


Oracle EBS R12 Sub-ledger Transaction ControlsFinancial Controls


Oracle EBS R12 Period-End Task ControlsFinancial Controls


Oracle EBS R12 Import JournalsFinancial Controls


Oracle EBS R12 Concurrent Request: Create AccountingFinancial Controls


Oracle EBS R12 Concurrent Request: Period-End – AP Trial BalanceFinancial Controls


Month End ReportsFinancial Controls


Oracle EBS R12Account ReconciliationFinancial Controls



process

Introductions




Case Study

Q&A

Agenda


Standard + Advanced Controls

User Roles

3-Way Match

Track Payments

Sentiment Analysis

Split Purchase

Orders Hide

Displays of Sensitive

DataDuplicate Payments

Transaction Threshold Amounts

Duplicate Vendors

Fine-grained

User Access

ConfigurationSnapshots &

Audit Trial

Transaction Pattern Analysis

Fuzzy Logic, ‘similar values’

Advanced Controls

StandardControls

Approval Hierarchies

Track Discounts

Advanced Controls


Enterprise Controls PlatformAdvanced Controls

Enterprise Risk & Controls Foundation

Dashboards, Reports and AlertsNotificationsWorklists Email PerspectivesSearch

Risk, Controls & Compliance ManagementReviewsDocumentation Assessments RemediationSurveys

Continuous Controls & Risk MonitoringSetupsAccess Master Data Audit TestsTransactions

User Authored ControlsData Connectors Fraud & Error Patterns

Ro

le B

ase

d A

cc

es

s S

ec

uri

ty

We

b S

erv

ice

s &

AP

Is

Custom or Legacy Applications

Risk & Controls Repository Assess and Certify Detect Policy Violations

All Users & Applications 100% of Transactions All Processes

< Procure to Pay< Order to Cash< Financial Reporting< User Access

Manage by Exception Optimize Processes


Flow Controls generate close tasks and prevent close errorsAdvanced Controls


Flow Controls generate close tasks and prevent close errorsAdvanced Controls


Transaction Controls Detect unusual Journal Entries Advanced Controls


Transaction Controls Detect unusual Journal Entries Advanced Controls


Monitor Key Configurations in ERPAdvanced Controls

Query a change tracker to identify changes across multiple instances.

Select multiple applications to monitor

Query requires Change Tracking Transfer program to run before any data can be collected. (This program transfers change tracking data from the ERP instances to CCG.)


Monitor Key Configurations in ERPAdvanced Controls



process

Introductions




Case Study

Q&A

Agenda


Wall Street Firm Maintains Control during Financial Crises

Our ClientLeading brokerage services firm specializing in credit derivative products, including single-entity credit default swaps, emerging market credit default swaps, credit indices, options on single-entity credit default swaps, options on credit indices, and credit index.The company was founded in 1987 and is headquartered in New York, New York with business primarily in North America, Europe, and Asia-Pacific.

ChallengesReduce costs related to audit and controls assessmentsReduce risk associated with the current state highly manual, fragmented processNeed Enterprise-wide visibility into the Risk and Compliance processesLeverage investments in technology to provide a foundation for Enterprise Risk Management

Solutions GRC, ERM and Fin Governance AnalyticsOracle GRC Manager

SuccessesImproved management visibility into financial close controls by providing real time reporting on GL close tasks performance by financial managers across the regions. Reduced financial misstatement risk by replacing manual, spreadsheet based error-prone process with automated checklistDelivered Enterprise Risk Management framework by enabling management and process owners to set key risk objectives and monitor risk indicators using simple dashboards. Provided Risk Assessment Analytics to improve audit planning.

Case Study


Case Study Record to Report Process Flow


Case Study Record to Report Process Flow


Define Enterprise Structure

Review TaskAssignments

CompleteTasks

ApproveTasks

Submit Schedules

CompleteClose/ReportingSchedules

Setup/OpenTemplates/Tasks

Update/InitiateTasks

ReviewTasks

CloseRegion

Task Owner/Reviewer/ApproverGlobal AdministratorRegional

Financial Director

Corporate

Controller

Release Tasks

Record to Report Process FlowCase Study


Case Study Task Management Dashboard


Case Study Results and Benefits


Case Study Advanced Controls with Hyperion







process

Introductions




Case Study

Q&A

Agenda


Leader in Risk Based Enterprise ControlsQ & A

One-on-One with ExpertsDownload DataProbe

Follow FulcrumWay on LinkedIn for ERP Risk and Controls

Business

FulcrumWay - Leverage Advanced Controls for EBS R12 to Streamline Record to Report Process